SpaceX is facing a discrimination lawsuit alleging that the company pays women and minority employees less than their male and White co-workers. Ashley Foltz, who was hired as a base-level engineer at a salary of US$92,000 (RM434,194), filed the proposed class action in Los Angeles Superior Court, citing California’s Equal Pay Act. Foltz claims that men with the same or less experience were offered salaries of up to US$115,000 (RM542,742). The complaint states that there is no legitimate justification for the discriminatory pay practices of Elon Musk’s company and its executives. SpaceX has not yet responded to the email seeking comment.
This is not the first complaint filed against SpaceX. In recent years, the company has faced several lawsuits from former employees accusing it of discrimination based on age, race, and disability. In August, a former SpaceX technician sued the company, claiming physical disability harassment and workplace retaliation.
According to a report by Sheryl Sandberg’s LeanIn.Org and McKinsey & Co, women continue to face challenges in climbing the corporate ladder in America. The report, based on research from 276 companies in the US and Canada, found that for every 100 men promoted to a manager role in 2022, only 87 women received the same promotion. Although the number of women promoted has slightly increased from 86 in 2021, they are still being overlooked despite requesting promotions at the same rate as men.
Foltz became aware of the pay gap at SpaceX when a new California pay transparency law took effect this year, requiring employers to disclose salary ranges in job listings. She claimed that her salary band was US$95,000 (RM448,352) to US$115,000, and SpaceX was obligated to give her a raise. However, they only increased her pay to the lowest tier of the salary band, US$95,000.
The complaint alleges that SpaceX classifies jobs into positions and levels, such as “technical writer,” “engineer 1,” and “engineer 2.” Foltz argues that this system is used to create a facially neutral pay structure, with women and minorities being forced to work under a different job title, such as technical writer, to justify lower pay. Additionally, she claims that they are promoted at lower rates than male and White employees and are paid at the lowest end of the salary band if promoted.
In August, the US Justice Department filed a lawsuit accusing SpaceX of discriminating against refugees and people granted political asylum who applied for jobs at the company. SpaceX has refuted the complaint, arguing that it is unlawful and should be dismissed.
Tesla Inc, the electric-vehicle maker led by Elon Musk, has also faced complaints of discrimination. Black workers and California state agencies have accused managers at Tesla’s Fremont factory of ignoring racial slurs and fostering a hostile workplace environment with hate symbols found in common areas.
The lawsuit is titled Foltz v. Space Exploration Technologies Corp and is being held at the Superior Court of California, Los Angeles County. – Bloomberg
Credit: The Star : Tech Feed
